Supply chain – The COVID 19 pandemic has definitely had its impact effect on the world. Economic indicators and health have been affected and all industries are touched in a way or perhaps yet another. Among the industries in which it was clearly obvious would be the agriculture as well as food industry.
In 2019, the Dutch extension and food sector contributed 6.4 % to the yucky domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion inside 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at the identical time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have major effects for the Dutch economy and food security as lots of stakeholders are affected. Even though it was apparent to numerous people that there was a great impact at the conclusion of the chain (e.g., hoarding in grocery stores, restaurants closing) and also at the start of this chain (e.g., harvested potatoes not finding customers), you will find a lot of actors within the source chain for which the effect is less clear. It is thus imperative that you find out how effectively the food supply chain as being a whole is actually prepared to contend with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the effects of the COVID-19 pandemic all over the food supplies chain. They based the analysis of theirs on interviews with around 30 Dutch supply chain actors.
Need in retail up, found food service down It is obvious and popular that need in the foodservice stations went down on account of the closure of places, amongst others. In a few instances, sales for suppliers of the food service business as a result fell to aproximatelly 20 % of the first volume. Being a complication, demand in the retail channels went up and remained at a quality of about 10 20 % greater than before the problems started.
Goods that had to come via abroad had their own issues. With the shift in desire coming from foodservice to retail, the need for packaging changed dramatically, More tin, cup or plastic was necessary for use in buyer packaging. As much more of this particular packaging material ended up in consumers’ houses rather than in restaurants, the cardboard recycling system got disrupted also, causing shortages.
The shifts in need have had a big effect on output activities. In certain instances, this even meant the full stop of production (e.g. in the duck farming industry, which emerged to a standstill as a result of demand fall out inside the foodservice sector). In other instances, a big portion of the personnel contracted corona (e.g. to the various meats processing industry), causing a closure of facilities.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis in China caused the flow of sea canisters to slow down pretty soon in 2020. This resulted in transport capacity which is limited throughout the very first weeks of the issues, and expenses which are high for container transport as a consequence. Truck travel encountered different issues. Initially, there were uncertainties regarding how transport would be handled for borders, which in the end were not as rigid as feared. What was problematic in instances that are a large number of , however, was the accessibility of drivers.
The response to COVID-19 – supply chain resilience The supply chain resilience analysis held by Prof. de Colleagues as well as Leeuw, was based on the overview of this main components of supply chain resilience:
To us this particular framework for the analysis of the interview, the findings show that not many companies were well prepared for the corona crisis and in fact mostly applied responsive methods. The most notable supply chain lessons were:
Figure one. 8 best practices for meals supply chain resilience
For starters, the need to develop the supply chain for flexibility and agility. This seems especially complicated for smaller companies: building resilience right into a supply chain takes time and attention in the business, and smaller organizations often do not have the potential to do it.
Second, it was found that much more attention was needed on spreading threat as well as aiming for risk reduction inside the supply chain. For the future, this means more attention has to be made available to the way companies depend on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization and intelligent rationing techniques in situations where demand cannot be met. Explicit prioritization is needed to continue to satisfy market expectations but additionally to improve market shares wherein competitors miss options. This particular task isn’t new, though it has additionally been underexposed in this problems and was frequently not a part of preparatory activities.
Fourthly, the corona crisis teaches us that the economic result of a crisis additionally is determined by the manner in which cooperation in the chain is actually set up. It is often unclear how further expenses (and benefits) are distributed in a chain, if at all.
Finally, relative to other purposeful departments, the businesses and supply chain works are in the driving seat during a crisis. Product development and advertising and marketing activities need to go hand in deep hand with supply chain activities. Whether the corona pandemic will structurally replace the traditional considerations between generation and logistics on the one hand as well as marketing on the other hand, the long term will need to explain to.
How is the Dutch food supply chain coping during the corona crisis?